Stacey Delaney, Managing Director at Sparcmedia, presented on 'How to Add New Revenue Streams to your Business by Incorporating Programmatic Capabilities' at Sparcmedia's sponsored breakfast session at SAGE.

1. THEFUTUREOFDIGITALADVERTISING
AGUIDETOADDINGPROGRAMMATIC
ADVERTISINGINTOYOURBUSINESS

2. TABLEOFCONTENTS
1. PROGRAMMATIC INDUSTRY OVERVIEW
2. WHY OFFER PROGRAMMATIC?
6. TOP 10 FACTORS YOU SHOULD CONSIDER
6. HIRING FOR PROGRAMMATIC
7. DEMAND SIDE PLATFORM
8. DATA MANAGEMENT PLATFORM
9. VIEWABILITY
9. BRAND SAFETY
10. ACCESS TO THIRD-PARTY DATA
10. PRIVATE MARKETPLACE DEALS
11. REPORTING DASHBOARDS
12. OPTIMISING FOR THE CUSTOMER JOURNEY
12. INSIGHTS
13. BUSINESS MODELS TO CONSIDER
14. IN-HOUSING
16. PARTNERSHIP
18. KEY TAKEAWAYS
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Pg No.

3. According to the FY15 - FY16 IAB Online
Advertising Expenditure Report for Australia,
display advertising grew by 30.3% over the
previous year reaching AU $664.5 million, with
mobile contributing 47.7% and video contributing
26.8%.
The transformation of how advertisers are buying
media is evident with over 58% of video expected
to be bought through programmatic channels in
2016, according to the 2015 State of the Video
Industry Report by AOL.
According to the 2015 Programmatic Roadmap
for Growth report by Magna Global, Australia is
the sixth largest programmatic market worldwide,
with the total spend expected to reach US $800
million by 2019.
The trend also shows that programmatic
advertising continues to take over the share
of traditional digital media, whilst traditional
remains the same.
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Magna Global - 2015 Programmatic Roadmap for Growth
PROGRAMMATIC
INDUSTRYOVERVIEW

4. Can my business benefit from programmatic
advertising?
If you are an agency (marketing, creative, SEO,
full-service, etc.) or marketer then the answer is
YES, you can benefit from adding programmatic
advertising to your business.
You may already be using programmatic
advertising and not be aware of it. Are you buying
Adwords or Facebook?
Yes, they are forms of programmatic advertising
although contribute a small part of the bigger
picture. Think about them as a lake whilst the
programmatic ecosystem comprising of the
entire ocean.
Okay, let’s dive deeper into what
programmatic advertising really is.
Sarah Wyse, Head Trainer at IAB Australia
says “Programmatic in its simplest form is a
strategic approach to creating deeper customer
relationships.
It’s about utilising all of these tools together via
one platform to have a more meaningful dialogue
with the right person, at the right time, in the
right environment.”
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WHYOFFER
PROGRAMMATIC?
2

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Advertising efficiencies
Buying media using programmatic provides
high-levels of efficiency as you can buy media
simultaneously across multiple advertising
channels and devices. Programmatic optimisation
also removes wastage allowing you to focus your
budget on the best performing areas.
Insight-Driven
Get actionable insights about the audience
interacting with your campaigns when you buy
media programmatically. Learn about niche
audiences that have an affinity towards your
brand or discovery of high-value customers vs.
tyre kickers.
Data-Driven
Programmatic advertising is data-driven which
means that you can leverage from the data
coming back from campaigns to understand the
audience better and create custom lookalike
audiences when overlaid with third-party data.
This is a potential goldmine for businesses to
discover new customers.
Make better decisions
Get actionable insights from your media activity
that can help you to run better campaigns. Track
performance by media channels, media format,
ad creatives, location, day and time.
Key benefits of using Programmatic Advertising

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WHAT FORMS OF ADVERTISING CAN
THE PROGRAMMATIC APPROACH BE
APPLIED TO?
Programmatic advertising can be used
to buy display, video, social, audio and
rich media ad units across all online
channels and mobile environments.
With the foray of technology available,
advertising can also now be brought
on television and outdoor digital
screens using programmatic. It won’t
be long until all digital advertising
is bought through programmatic
channels.
As a result, booking advertising will
become more efficient, and brands
will get more bang for their buck by
reaching the right audiences, at scale,
and with greater precision.

7. Key benefits of building programmatic capability in your business.
Build additional revenue
Adding programmatic to your business can help
you tap into the US $800 million programmatic
industry. You may also consider building
out specific products which complement
programmatic media buys, including: Ad Serving,
Audience Build, Data Targeting, Dynamic Creative
Services, Programmatic Insights and Client
Training Sessions.
Future-proof your agency
Programmatic is changing how we buy media
and is opening up the media buying ecosystem
to businesses who would never have had
access to it before. Get yourself ready for when
programmatic automation replaces all manually
bought media.
Retain clients & win new clients - A research
by Forrester found that 79% of advertisers made
programmatic advertising buys in 2015.
Marketers are increasingly automating their
media buying to achieve efficiency and scale.
If you aren’t providing them with a superior
programmatic solution someone else will.
Get a larger share of your clients business
Advertising budgets are being re-prioritised to
fund programmatic advertising. For example,
according to the 2015 AOL State of The Video
Industry report 9 out of 10 buyers shifting
budget to digital video are reallocating from TV.
A programmatic business can allow you to tap
into these budgets, even if you haven’t previously
been playing in that space.
Compete with agency holding groups
All of the larger agency holding groups have a
programmatic business, called a trading desk.
Top tier brands are used to having a chunk of
their budget pushed into a programmatic buy.
Offering a programmatic solution gives you the
buying power of a large agency with the boutique
service of an independent agency.
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Great, you’re now getting serious about
programmatic and want to incorporate it
into your business. Here are some important
factors that you should be looking at.
1. Hiring for Programmatic
The most important factor of having a
programmatic solution for your business is hiring
the right talent so that you have the capacity to
execute and optimise effective programmatic
campaigns.
Programmatic although automated requires
continuous optimisation across multiple
parameters such as best performing websites,
channels, device, time of the day, day of the week
and so on. To achieve the best results you need
to optimise your campaigns on a daily basis and
in order to do so you need someone hands-on
who can manage this.
Unlike other media professionals with marketing
and advertising backgrounds you need to look
for people with a maths, statistics, accounting
or finance background when hiring for
programmatic.
This is because unlike traditional media buying,
programmatic requires someone who is able
to read and interpret data to spot trends and
uncover insights, in order to optimise campaigns
effectively.
You will also need some one senior with prior
programmatic experience who can lead the
team, set policies, create processes and best
practices such as brand safety. They will also
need to understand the workings of the different
elements of programmatic advertising such as
DSPs, DMPs, SSPs, first-party data, third-party
data, dashboards, insights, PMP deals, etc.
Most importantly this person has to have the
knowledge to be client facing to translate the
complexities of programmatic advertising.
As programmatic advertising is still in its
infancy it is hard to come by people with the
right skill sets to carry out the job. To start
your search try partnering up with industry
associations such as IAB and ADMA.
TOP10FACTORSYOU
SHOULDCONSIDER

9. 2. Demand Side Platform
In order to buy ad inventory across thousands
of different website publishers you need to have
access to a Demand Side Platform (DSP).
A DSP is a platform that facilitates all the buying
of ad inventory by plugging into several other ad
networks and ad exchanges.
This platform is crucial to the entire process of
programmatic media buying as this is where you
manage your campaigns, select your targeting
criteria, place your bids, overlay your data and so
on.
Things to ask yourself when selecting a DSP.
Usability - How easy is it to use the platform and
set up campaigns?
Reporting - Does it provide you with analytic
tools to crunch massive amount of data coming
back from your media campaigns?
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Think of it as a smart kitchen in a restaurant
that will prepare a meal using food ingredients
sourced from different local markets while taking
into consideration how much you are willing to
pay, your allergies, your food preferences and so
on.
Similar to choosing a good restaurant where
you chose it based on how good the food is, the
service level, time taken, etc. you will want to
choose the best DSP platform to get started with.
There are hundreds of DSPs in the market that
offer programmatic media buying on a grand
scale. Consult the IAB or attend events like Adtech
to see what is in the market.
Market Reach - How many ad exchanges does
the DSP have access to?
Access to third-party data - Does the DSP have
integration with third-party data providers?
Minimum spend requirements - How much
inventory do you need to purchase annually to
meet the minimum spend requirements?

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3. Data Management Platform
A Data Management Platform (DMP) allows you
to build audiences which you can push into a DSP
to target through programmatic media.
The DMP can also ingest your first party data,
like website traffic so that you can build your
programmatic targeting off your existing user-
base, finding potential customers who share
similar attributes to your existing customers.
Things to consider when selecting a DMP.
Data Portability - It is important that your data is
portable and can be used across any channel. To
ensure this you need to make sure that the DMP
you choose can integrate with other DSPs, ad
servers, ad exchanges and supply side platforms.
A DMP also allows you to analyse which
audiences are engaging with your advertising,
allowing you to understand their key behaviours
and demographic information, as well as being
able to identify your highest value customers.
This is a potential goldmine of information for
marketers as it helps them to better understand
their customers and focus media spend into the
highest performing areas.
Insights - You need to make sure that your DMP
has user friendly in-built analytics tools that can
help you to uncover insights into your audience
without having to manually scan through large
chunks of data.

11. 4. Viewability
According to Google, 56% of impressions are not
seen. An ad impression doesn’t guarantee that
your ad was viewed. Low viewability can occur
owing to factors like ad placement, ad size or
issues such as fraud.
To ensure that your ads are viewable there are a
number of viewability measurement tools in the
market that can verify the number of ads being
viewed as opposed to just ad impressions.
Viewability can be important to brand led
advertisers and it is worth getting access to tools
like Active View or Moat so that you can gauge
how important a role it plays for you in your own
campaigns.
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5. Brand Safety
Programmatic advertising is focused on reaching
the targeted audience, regardless of which site
they are visiting. It could be harmful for a brand if
their ads happen to appear on non-savoury sites
with adult content or propagating violence and
offensive language.
In order to avoid this, you will need to create a
blacklist of sites from the get go to make sure
that your ads are being served in a brand safe
environment.
You can also use tools from vendors such as
Integral AdScience or DoubleVerify.

12. 7. Private Marketplace Deals
Private Marketplace deals allow you to gain
access to reserved or premium inventory from
larger publishers.
For example, a large publisher like Fairfax may
reserve their homepage inventory. This is often
done to gain a premium on ad spaces that are
6. Access to Third-Party Data
In order to refine your targeting to the right
audience you may want to consider getting access
to third-party data. This is often done through
partnerships with third-party data providers who
provide access to audience segments that have
been pre-created from their collected data and
charged on a CPM model. The price to access this
data will differ depending upon the provider and
the partnership arrangement. Usually there are
discounts for larger volumes of data being used.
Some of the data providers in the market include
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Experian, Eyeota and Helix Personas by Roy
Morgan.
Things to consider before partnering with any
data provider.
Data Source - How is the data collected? Is it only
cookie-based or do they also have access to the
users offline activity such as spending?
Data Freshness - When was the data collected
and last updated? Is this synced in real-time with
the with the Demand Side Platform that you will
be using?
in high-demand by reserving these spots
for select advertisers and making the rest
of the inventory available through the open
programmatic ecosystem.
If you would like to access premium inventory
you should set up a private market place deal
with key publishers.

13. 8. Reporting Dashboards
Reporting dashboards are essential to running
programmatic campaigns as you will see all of
your advertising metrics in one place along with
insights on your engaged audience so that you
can optimise your campaigns on the go.
Although DSPs have their own reporting
dashboards you will want to see your advertising
efforts across different digital platforms such
as AdWords, Social and Display, all through one
source so that you can get a holistic view of your
campaigns results.
There are several dashboard providers in the
market such as Datorama, Sisense, Tapclicks and
Funnel.
Things to consider when selecting a
dashboard provider.
Integration - Does the dashboard integrate with
multiple advertising platforms, DSPs, CRM source,
etc? Are the integrations built in or will you need
to use custom APIs?
Customisation - How easy is it to setup a custom
dashboard? Will you have access to preloaded
templates? Can you create your own templates?
Is it a drag and drop interface or do you need to
know custom coding.
Data Security - Creating a bespoke dashboard
from scratch and hosting it on your own server
can be more beneficial in terms of protecting
your data and increasing security.
Sample Sparc Insights Dashboard
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14. 9. Optimising for the customer journey
Often digital campaigns focus on either end of
the funnel. In order to get meaningful results
from advertising campaigns marketers should be
able to track and provide results for each stage of
the customer journey, from awareness right up to
the purchase stage, including the consideration
stage.
This requires programmatic access to all media
channels, platforms and formats along the
funnel.
As technology evolves media of all forms of
10. Insights
One of the biggest benefits of running
programmatic advertising campaigns is the
insights derived from the audience engaging
with your campaign. This gives you valuable
information that can transform your business.
Rather than solely focusing on metrics like CTR,
CPA and CPC to measure campaign success, also
focus your attention on uncovering more detailed
insights including: which audience engage with
my advertising? Which audiences don’t?
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Who are my highest value customers? This
valuable information can transform your
business.
To get these insights you will need access to
tools such as a DMP to capture information
and a dashboard to aggregate media, sales,
performance and DMP data.
You will also need a dedicated resource who
can translate this information into meaningful
suggestions and recommendation that can be
applied to the business.
media will be bought programmatically including
TV, audio and digital outdoor.
Providers such as Pandora are already
providing audio ad inventory programmatically.
In the television space ads can be bought
programmatically across the Channel 10
networks including the Foxtel network.
Since these platforms aren’t directly available on
the open ad exchanges you will need to establish
direct partnerships with these providers to
deliver a holistic programmatic offering.

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BUSINESSMODELS:
GETTING THE MODEL RIGHT FOR YOU
Adding programmatic advertising to your business services can be both
rewarding and challenging. Here are two models to get things off the ground.

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BENEFITS
Transparency
With your own in-house desk, you will be
driving the strategies, pushing the buttons and
optimising your campaigns. As such you will
have complete transparency on the strategies
that work, those that don’t and your advertising
spend.
Best interest
As the programmatic department will be part of
your own business, you will set department KPIs,
budgets and strategy and as such you will always
be working to your own goal with your own best
interests at heart.
Data Ownership
You will have complete ownership of the data
that is derived from your campaigns. You can
push this data into your data management
platform and marry it with existing customer
data. You will also have greater control over your
first-party data and will have the opportunity to
leverage it on all media buys to help you to hone
in on your target customer.
Greater Audience Insight
Get visibility on who your customers really are
and see where your brand/clients get maximum
traction.
CHALLENGES
Time to Market
We forecast that your programmatic trading
desk will take 6-24 months to build and to be
fully functional. This is because you will need to
onboard different technologies, hire staff and
develop best practices.
Investment Cost
With the build out of a new department, you will
need to put together a business case and ensure
that you can generate the return required to
justify the investment. You will need to work out
whether this is a revenue stream, a loss leader or
a future proofing exercise.
“In-housing”
Building your own programmatic department.

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motivated so that they stick with you and don’t
jump at the next offer.
Access to technology
You will need to source and select the right
technology which powers your trading desk. You
will need a demand side platform which will give
you access to inventory. You may need 1, 2, 10
of these dependent on the type of media you
need to buy and the results you need. You may
also want to consider an Ad Server and Data
Management Platform.
Risk - Whilst you are learning programmatic,
there is going to be margin for error. Your team
are human and you cannot prevent the fact that
they will make mistakes. That could be something
as simple as adding an extra zero to a budget,
which could result in overspending. You might
sign up to a piece of tech which then ultimately
doesn’t suit your purpose. Ensure you factor
financial risks into your plan.
Change Management - You have to work this
new division into your existing structure which
will not be an overnight exercise. The difficulty of
this will depend on the scale of your business.
You may save a lot of budget in agency and
trading desk fees, but you will need to reinvest
a large sum back into building your in-house
trading desk so you should undertake it only if it
is truly right for your business, not just for cost
reasons.
The general rule of thumb is that in-housing is
only worth it if you spend in excess of $2 million
per annum on programmatic advertising. If
you need to invest in a DMP, which is highly
recommended for brands, this alone could cost
you $300K+ per annum.
Talent Acquisition
You will need to hire new disciplines which you
may never have hired before which means
that you won’t always know if those people are
working out for you.
Campaign Managers or Programmatic Traders
are in high demand and short supply, given the
boom in this industry. You will be competing with
many different companies who want their skills
and will need to ensure that you offer them an
environment that is rewarding and keeps them

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BENEFITS
Time to market
Because you are partnering with a business
that already has programmatic capability, your
offering could be in market within a month.
Leverage experts
You will reduce the learning curve significantly by
leveraging the disciplines of your chosen partner.
They can help you to build your programmatic
strategy, upskill your team, answer any of the
nagging questions that you’ve been too afraid
to ask, present you in the best light to your
client and of course execute your programmatic
campaigns.
No additional resource required
The partner will provide all campaign managers,
an account manager, strategist and access to
senior industry professionals so you don’t need
to go through the hiring process. Better yet, they
are not on your headcount so you don’t need to
worry about salaries, business cases, retention or
things like ongoing training.
No lock-ins with particular technology
Chances are that if you are reading this
whitepaper, you have already been approached
by a number of DSPs, Ad Servers, DMPs, Ad
Networks and all of the latest tech required to
run a programmatic business. There are virtually
hundreds of tech suppliers that you could use.
In a partnership model, your partner will have
already built their tech stack. So you don’t need
to vet tech vendors are not forced into making a
decision that you are not confident in making.
Get it right the first time
Using experts will increase your chances of
success. Your partner will have spent many years
perfecting their skills, working with a variety of
clients, testing out the latest strategies and tech.
They have already been through the journey of
building a programmatic business and can ensure
that your experience is a good one.
No financial risk
As you don’t need to put in any investment costs
up front, there really is very little financial risk
involved. If the partnership doesn’t work, you can
end it.
“Partnership”
Offer best in breed service by partnering
with an established programmatic business.

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CHALLENGES
Building a successful relationship
As with any partnership, each side needs to work
to make it a success. This should not just be a
client-supplier relationship. To get the most of it
you will need to invest time and communicate.
You will also need to vet your partner and ensure
that they are right for you. Be frank with them
about the level of service you need. If you need
training, let them know. Not all businesses will be
prepared to go on that journey with you. Weed
those ones out in your selection process.
Ensuring they have your best interest
As this is a completely separate business to your
own, that means that the partner is working
towards their own KPIs and interests. You will
need to ensure that you trust them, communicate
your desired outcomes and be certain that they
share your values so that you can be sure that
they are working in your best interest.
Understanding how your money is being spent
You have to face the fact that you are never going
to have full visibility on how your money is being
spent, which strategies work and which ones
don’t. Mitigate this by getting any concerns out
before you sign the partnership.
Access to data and insights
In a partnership model, typically the partner
will own the campaign data and it will be their
decision as to whether they share insights from
that data with you or not. If those things are
important for you, you will need to speak to the
partner about what their business model will
provide you access to.

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KEYTAKEAWAYS
1. Face the fact that programmatic is inevitable. It wasn’t long ago when online
advertising took over print advertising. Programmatic advertising is the next evolution
of online advertising.
2.Get a strategy in place now. Start thinking about how you can incorporate this
into your current business, what products you’re going to offer your clients and where
you’re going to go from there.
3.Speak to the industry. Speak to different people in the industry to evaluate the
model that is right for you. Make sure you get more than one opinion.
4.How much do you know? Asses yours and your clients’ knowledge level to help
you to decide if you have the skills to go in-house, need a partner or consultant.
5.Learn by doing. Allocate a trial budget of $50k-$100k towards programmatic
advertising to test the waters before you jump into the deep end.

21. WE’RE HERE TO HELP
For more information and to get started on your
Programmatic Advertising journey request a one-on-one
consultation with our Business Partnership Consultant.
Visit bit.ly/hellosparcmedia